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INCOME TAXES
 3 Months Ended
Mar. 31, 2023
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
Year-to-date income tax expense or benefit is the product of the most current projected annual effective tax rate (“PAETR”) and the actual year-to-date pretax income (loss) adjusted for any discrete items. The income tax expense or benefit for a particular quarter, is the difference between the year-to-date calculation of income tax expense or benefit and the year-to-date calculation for the prior quarter. Items unrelated to current period ordinary income or (loss) are recognized entirely in the period identified as a discrete item of tax.
The Company’s PAETR was lower than the US federal statutory rate of 21.0% during the three months ended March 31, 2023 and 2022 primarily due to the impact of maintaining a US valuation allowance provided on US deferred tax assets.
The Company continues to maintain a full valuation allowance on US federal and state net deferred tax assets for the period ending March 31, 2023 as a result of pre-tax losses incurred since the Company’s inception in early 2012. The Company is projecting pre-tax loss in 2023.
Current and Prior Period Tax Expense
The Company’s income before taxes, income tax provision or benefit and effective tax rates were as follows:
Three Months Ended March 31,
(In thousands, except percentages)20232022
Loss before (benefit) provision for income taxes$(2,698)$(12,126)
(Benefit) provision for income taxes(116)28 
Effective tax rate4.3 %(0.2)%
The change in the effective tax rate from the prior year was primarily due to increased tax benefits related to stock-based compensation.
The tax benefit recorded for the current period is primarily attributable to the excess tax benefits of stock-based compensation, which have been recognized discretely. This benefit was partially offset by non-deductible compensation.